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BURLINGTON, Massachusetts, April 23, 2012 /PRNewswire/ --

Attunity, Ltd. (OTC Bulletin Board: ATTUF.OB), a leading provider of information availability software solutions, today reported its unaudited financial results for the three month period ended March 31, 2012.

Financial Highlights for the First Quarter of 2012:

  • Sixth consecutive quarter of license and total revenues growth.
  • Total revenues increased 106% to $6.1 million in the first quarter of 2012, compared to $3.0 million for the same period last year.
  • License revenues increased 125% to $3.6 million in the first quarter of 2012, compared to $1.6 million for the same period last year.
  • Non-GAAP net income increased 24% to $504,000 in the first quarter of 2012, compared to $408,000 for the same period last year.
  • Total outstanding debt was reduced to $0.3 million as of March 31, 2012 from $0.9 million as of December 31, 2011:
    • An additional $0.5 million of the Company's outstanding convertible promissory notes (debt) were converted into equity by certain holders, demonstrating their confidence in the Company's prospects; and
    • Outstanding Plenus debt was fully repaid with a final payment of $83,000 during January 2012.
  • Cash and cash equivalents increased to $2.4 million as of March 31, 2012, compared to $1.5 million as of December 31, 2011.
  • Shareholders' equity increased to $6.1 million as of March 31, 2012 compared to $5.2 million as of December 31, 2011.

Recent Operational Highlights:

  • Consummated several major deals, primarily within the financial services sector.
  • Partnered with Hortonworks, a leading commercial vendor promoting the innovation, development and support of Apache Hadoop, to develop Big Data replication products for Apache Hadoop that enable Big Data analytics.
  • Completed the integration of RepliWeb with Attunity to unify all of the company's functions and to leverage the capabilities of both organizations.
  • Developed innovative products that enable data replication for leading cloud platforms. These new products, which leverage synergies between the Attunity and its recently acquired RepliWeb technologies, will be released during the second half of this year.

Commenting on the results, Mr. Shimon Alon, Chairman and CEO of Attunity, stated, "We are pleased to report that our information availability solutions for replicating both structured and unstructured data are continuously gaining traction in the market, making this quarter our sixth consecutive quarter of revenue growth. The primary driver of this growth was our direct sales organization, which performed well across all regions and product lines. Additionally our OEM partnerships with IBM and Microsoft continue to generate strong revenue performance."

Mr. Alon concluded, "We are committed to growing our business and serving our customers. Accordingly we regularly enhance our solutions and look to form partnerships with providers of complementary solutions. We recently entered into a partnership with Hortonworks that will facilitate loading massive amounts of structured and unstructured data to the Apache Hadoop Distributed File System (HDFS). Together, we plan to deliver solutions to the market that expedite and simplify the process of making Big Data available for modern Business Intelligence (BI) and analytics.  In addition, we are expanding Attunity Replicate to address broader markets, including large-scale data warehousing, predictive analytics, continuous availability, and data migration. We plan to release multiple solutions for cloud computing, replicating data across data centers and the cloud, with specific offerings for the leading IaaS (Infrastructure as a Service) and SaaS (Software as a Service) platforms. These new solutions will offer scalability and high-performance to expand and enhance our business from its traditional on-premise infrastructure to private and public cloud environments. We will continue to develop solutions based on our data and file replication technologies to deliver innovative Big Data and Cloud transfer solutions."

Financial Results for Q1 2012

Total revenues for the first quarter of 2012 increased 106% to $6.1 million, compared to $3.0 million for the same period of 2011. This included license revenues for the first quarter of 2012, which increased 125% to $3.6 million, compared to $1.6 million for the same period of 2011. RepliWeb products contributed $2.1 million in total revenues and $0.9 million in license revenues in the first quarter of 2012.

Net operating income for the first quarter of 2012 was $343,000, compared to $340,000 for the same period of 2011. Non-GAAP net operating income for the first quarter of 2012 was $831,000 compared to $513,000 for the same period last year. Non-GAAP net operating income for the first quarter of 2012 excludes equity-based compensation and amortization of software development costs totaling $220,000 compared to $173,000 for the same period last year, as well as $268,000 in amortization and expenses related to the acquisition of RepliWeb (see footnotes 1 and 2 at the end of this release).

Net income (loss) for the first quarter of 2012 was ($125,000), or ($0.00) per diluted share, compared to $179,000 profit, or $0.00 per diluted share, in the first quarter of 2011. Net loss for the first quarter of 2012 was negatively impacted by a total of $157,000 in financial expenses including inducement expenses associated with conversion of convertible debt of $108,000 (such expense did not exist in the same period in 2010) and $49,000 associated with the revaluation of the conversion feature related to Company's convertible debt, and by a total of $206,000 of amortization of technology ($140,000) and of customers relationship ($66,000) both associated with the acquisition of RepliWeb, as well as $164,000 in  expenses related to stock based compensation . Non-GAAP net income for the first quarter of 2012 was $504,000 compared to $408,000 for the same period last year. Non-GAAP net income for the first quarter of 2012 excludes a total of $629,000 in expenses and amortization related to the acquisition of RepliWeb, financial expenses associated with the revaluation of liabilities presented at fair value and with the conversion of part of the convertible debt, equity-based compensation expenses and amortization of software development costs (see footnotes 1 and 2 at the end of this release).

Cash and cash equivalents were $2.4 million as of March 31, 2012, compared to $1.5 million as of December 31, 2011.

Shareholders' equity increased to $6.1 million as of March 31, 2012, compared to $5.2 million as of December 31, 2011.

See "Use of Non-GAAP Financial Information" below for more information regarding Attunity's use of Non-GAAP financial measures.

Conference Call Information

The Company's management will host a conference call today, April 23, 2012, at 10:00 a.m. Eastern Time. The conference call will be available via webcast and can be accessed through the Events section of Attunity's website, http://www.attunity.com/events, and http://www.kcsa.com, the contents of which are not part of this press release. Please allow extra time prior to the call to visit the site and download any necessary software to listen to the Internet broadcast. The dial-in numbers for the conference call are 1-866-691-3082 (US Toll Free), +1-480-629-1941 (International) or 072-273-3197 (Israel) All dial-in participants must use the following code to access the call: 4531512. Please call at least five minutes before the scheduled start time.

For interested individuals unable to join the conference call, a replay of the call will be available through May 23, 2012 at 1-800-406-7325 (US Toll Free), +1-303-590-3030 (International) or 072-273-3198 (Israel). Participants must use the following code to access the replay of the call: 4531512. The online archive of the webcast will be available on http://www.attunity.com/events or http://www.kcsa.com for 30 days following the call.

About Attunity

Attunity is a leading provider of information availability solutions that enable access, sharing and distribution of data across heterogeneous enterprise platforms, organizations, and the cloud. Our software solutions include data replication, change data capture (CDC), data connectivity, enterprise file replication (EFR) and managed-file-transfer (MFT). Using Attunity's software solutions, our customers enjoy significant business benefits by enabling real-time access and availability of data and files where and when needed, across the maze of heterogeneous systems making up today's IT environment.

Attunity has supplied innovative software solutions to its enterprise-class customers for nearly 20 years and has successful deployments at thousands of organizations worldwide. Attunity provides software directly and indirectly through a number of partners such as Microsoft, Oracle, IBM and HP. Headquartered in Boston, Attunity serves its customers via offices in North America, Europe, and Asia Pacific and through a network of local partners. For more information, visit http://www.attunity.com or our In Tune blog and join our community on Twitter, Facebook, LinkedIn and YouTube.

Use of Non-GAAP Financial Information

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles, or GAAP, Attunity uses Non-GAAP measures of net income (loss), net operating income (loss) and net income (loss) per share, which are adjustments from results based on GAAP to exclude expenses and amortization associated with the acquisition of RepliWeb, non-cash equity based compensation charges in accordance with ASC 718, amortization of software development costs in accordance with ASC 985-20, and non-cash financial expenses such as revaluation net of related tax effect of liabilities presented at fair value and convertible debt inducement expenses. Attunity's management believes the non-GAAP financial information provided in this release is useful to investors' understanding and assessment of Attunity's on-going core operations and prospects for the future. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and as such has determined that it is important to provide this information to investors. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other Federal Securities laws. Statements preceded by, followed by, or that otherwise include the words "believes", "expects", "anticipates", "intends", "estimates", "plans", and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could" are generally forward-looking in nature and not historical facts. For example, when we discuss our outlook for 2012 or introduction of new solutions for cloud computing, we are using a forward-looking statement. Because such statements deal with future events, they are subject to various risks and uncertainties and actual results could differ materially from Attunity's current expectations. Factors that could cause or contribute to such differences include, but are not limited to: our reliance on strategic relationships with our distributors, OEM and VAR partners, including Microsoft; risks and uncertainties relating to the acquisition of RepliWeb, including costs and difficulties related to integration of acquired businesses, the combined companies' financial results and performance, and known or unknown contingent liabilities, including litigation, costs, tax and expenses; our liquidity challenges and the need to raise additional capital in the future; timely availability and customer acceptance of Attunity's new and existing products, including Attunity Replicate; changes in the competitive landscape, including new competitors or the impact of competitive pricing and products; a shift in demand for products such as Attunity's products; the impact on revenues of economic and political uncertainties and weaknesses in various regions of the world, including the commencement or escalation of hostilities or acts of terrorism; and other factors and risks on which Attunity may have little or no control. This list is intended to identify only certain of the principal factors that could cause actual results to differ. For a more detailed description of the risks and uncertainties affecting Attunity, reference is made to Attunity's Annual Report on Form 20-F/A for the year ended December 31, 2011, which is on file with the Securities and Exchange Commission (SEC) and the other risk factors discussed from time to time by Attunity in reports filed or furnished to the SEC. Except as otherwise required by law, Attunity undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

© 2012 Attunity Ltd. All rights reserved. Attunity is a trademark of Attunity Inc.

CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

                                                       March 31,   December 31,
                                                           2012           2011
                                                      Unaudited
    ASSETS
 
    CURRENT ASSETS:
    Cash and cash equivalents                       $     2,448    $     1,484
    Restricted cash                                         367            362
    Trade receivables (net of allowance for
    doubtful accounts of $15 at March 31, 2012 and
    December 31, 2011)                                    1,950          1,988
    Other accounts receivable and prepaid expenses          313            158
 
    Total current assets                                  5,078          3,992
 
    LONG-TERM ASSETS:
    Other long term assets                                   68             72
    Severance pay fund                                    2,797          2,684
    Property and equipment, net                             410            380
    Intangible assets ,net                                2,592          2,854
    Goodwill                                             13,119         13,011
 
    Total long-term assets                               18,986         19,001
 
    Total assets                                    $    24,064    $    22,993


CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands except share data

                                                                    
                                                       March 31,   December 31,
                                                           2012           2011
 
    LIABILITIES AND SHAREHOLDERS' EQUITY              Unaudited
    CURRENT LIABILITIES:
    Current maturities of long-term convertible
    debt                                           $        307     $      835
    Current maturities of long-term debt                     23            115
    Trade payables                                          495            452
    Deferred revenues                                     6,678          5,733
    Employees and payroll accruals                        1,953          2,151
    Accrued expenses and other current liabilities        1,577          1,906
    Bifurcated conversion feature , presented at
    fair value                                               98            227
 
    Total current liabilities                            11,131         11,419
 
    LONG-TERM LIABILITIES:
    Contingent payment obligation                         1,735          1,669
    Long term deferred tax liability, net                   457            352
    Other long-term liabilities                             346            388
    Liabilities presented at fair value                     525            510
    Accrued severance pay                                 3,764          3,467
 
    Total long-term liabilities                           6,827          6,386
 
    SHAREHOLDERS' EQUITY:
    Share capital - Ordinary shares of NIS 0.1 par
    value -
    Authorized: 130,000,000 shares at March 31,
    2012 and December 31, 2011 Issued and
    outstanding: 41,380,215 shares at March 31,
    2012 and 39,951,106 at December 31, 2011              1,184          1,146
    Additional paid-in capital                          108,511        107,572
    Accumulated other comprehensive loss                   (624)          (690)
    Accumulated deficit                                (102,965)      (102,840)
 
    Total shareholders' equity                            6,106          5,188
 
    Total liabilities and shareholders' equity     $     24,064     $   22,993


CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands, except per share data

                                                     3 months ended
                                                        March 31,
                                                    2012         2011
                                               Unaudited    Unaudited
 
    Software licenses                        $     3,563   $    1,587
    Maintenance and services                       2,519        1,371
 
                                                   6,082        2,958
    Operating expenses:
    Cost of revenues                                 636          303
    Research and development                       2,037          751
    Selling and marketing                          2,282        1,016
    General and administrative                       784          548
 
    Total operating expenses                       5,739        2,618
 
    Operating Income                                 343          340
 
    Financial expenses, net                          347          121
 
    Income /(Loss) before income taxes               (4)          219
 
    Taxes on income                                  121           40
 
    Net income / (loss)                      $      (125)  $      179
 
    Basic net income/(loss) per share        $     (0.00)  $     0.01
    Weighted average number of shares used
    in computing basic net income /( loss)
    per share                                     41,093       33,193
 
    Diluted net income/(loss) per share      $     (0.00)  $     0.00
    Weighted average number of shares used
    in computing diluted net income/(loss)
    per share                                     41,093       40,116


CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

                                                          3 months ended
                                                     March 31,       March 31,
                                                       2012            2011
                                                     Unaudited       Unaudited
 
    Cash from operating activities:
    Net Income /( loss)                            $      (125)    $       179
    Adjustments required to reconcile net income
    ( loss) to net cash provided by operating
    activities:
 
    Depreciation                                            48              26
    Stock based compensation                               164              68
    Amortization of intangible assets                      262             105
    Accretion of contingent payment obligation              66               -
    Convertible debt inducement expenses                   108               -
    Increase (decrease) in accrued severance pay,
    net                                                    184              25
    Decrease (increase) in trade receivables                38             502
    Decrease ( increase) in other accounts
    receivable and prepaid expenses                       (180)            (74)
    Decrease (increase) in long-term prepaid
    expenses                                                 4               7
    Increase (decrease) in trade payables                   43              72
    Increase (decrease) in deferred revenues               945             762
    Increase (decrease) in employees and payroll
    accruals                                              (198)            (11)
    Increase (decrease) in accrued expenses and
    other liabilities                                     (329)             23
    Revaluation of restricted cash                          (5)             (5)
    Change in liabiliteis presented at fair value           49              56
    Change in deferred taxes net                            88               -
 
    Net cash provided by operating activities            1,162           1,735
 
    Cash flows from investing activities:
    Purchase of property and equipment                     (78)            (65)
 
    Net cash used in investing activities                  (78)            (65)
 
    Cash flows from financing activities:
    Proceeds from exercise of stock options,
    warrants and rights                                     74             133
    Receipt of long term loan                                -              57
    Repayment of long-term debt                            (92)           (264)
    Repayment of convertible debt                          (61)            (61)
 
    Net cash used in financing activities                  (79)           (135)
 
    Foreign currency translation adjustments on
    cash and cash equivalents                              (41)             15
 
    Increase (decrease) in cash and cash
    equivalents                                            964           1,550
    Cash and cash equivalents at the beginning of
    the period                                           1,484             872
 
    Cash and cash equivalents at the end of the
    period                                         $     2,448     $     2,422
 
    Supplemental disclosure of cash flow
    activities:
    Cash paid during the period for:
    Interest                                       $         3     $        26
 
    Income tax                                     $       112     $         2
 
    Non cash activity
    Conversion of convertible debt and bifurcated
    conversion feature                             $       630               -


RECONCILIATION OF SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION

U.S. dollars in thousands, except per share data

                                                               3 months ended
                                                                  March 31,
                                                                2012         2011
                                                           Unaudited    Unaudited
 
       GAAP operating Income                             $       343    $     340
       Stock based compensation (1)                              164           68
       Amortization of Software Development Costs                 56          105
       Acquisition-related expenses, amortization and
       adjustments (2)                                           268            -
       Non-GAAP operating Income                         $       831    $     513
 
       GAAP net Income (loss)                                   (125)         179
       Stock based compensation (1)                              164           68
       Amortization of Software Development Costs                 56          105
       Acquisition-related expenses, amortization and
       adjustments (2)                                           268            -
       Revaluation of liabilities presented at fair
       value                                                     157           56
       Accretion of contingent payment obligation                 66            -
       Tax related to the acquisition                            (82)           -
       Non-GAAP net Income (Loss)                        $       504    $     408
 
       GAAP diluted net Income (loss) per share:               (0.00)        0.00
       Operating expenses GAAP                                  0.01         0.00
       Financial expenses                                       0.01         0.00
       Taxes on income                                         (0.00)           -
 
       Non-GAAP diluted net Income per share             $      0.01    $    0.01
       Weighted average number of shares used in
       computing diluted net income per share                 41,093       40,116
    (1)Stock-based compensation expenses under ASC 718
       included in:
       Research and development                                   60           19
       Selling and marketing                                      40           19
       General and administrative                                 64           30
                                                         $       164    $      68
 
    (2)Acquisition-related expenses, amortization and
       adjustments:
       Valuation adjustment on acquired deferred
       services revenue                                           62            -
       Cost of Sales - Amortization of technology                140            -
       Selling and marketing - Amortization of customers
       relationship                                               66            -
 
                                                         $       268    $       -
 
       Total Acquisition-Related Expenses:
       Acquisition-related expenses, amortization and
       adjustments - Note 2                                      268            -
       Accretion of contingent payment obligation                 66            -
       Tax related to the acquisition                            (82)           -
                                                         $       252    $       -


For more information, please contact:
Todd Fromer / Garth Russell  
KCSA Strategic Communications
P: +1-212-682-6300
[email protected] / [email protected]

Dror Harel-Elkayam, CFO
Attunity Ltd.
Tel. +972-9-899-3000
[email protected]

SOURCE Attunity Ltd

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